The global market for home furnishings was negatively impacted by the housing crisis as homeowners cut down drastically on non-essential spending, postponed home improvement and decorating projects, and delayed buying new homes. Due to recovery in the housing sector and in the wider global economy, demand for home furniture and decoration has begun to turn around. With employment figures improving and levels of disposable income rising, property owners are more readily investing in their homes.
Increased consumer interest in home decoration is fuelling new market growth. In particular, demand for organic home furnishing products is continuing to rise thanks to increased consumer awareness regarding the importance of choosing more environmentally friendly materials. Other factors driving market growth include availability of wider product ranges, regional market development and electronic media campaigns. Consumers are showing particular interest in natural products and alternative materials in the home furnishing products sector.
Over the years to come, leading players in the global home goods industry are likely to concentrate their efforts on product innovation and environmentally friendly business practices, goods and packaging. Demand will continue to rise as the housing sector recovers, with rising affluence in specific demographics such as aging baby boomers driving demand for certain products. As household items become more fashion-oriented, retailers and manufacturers are increasingly using celebrities in product branding and advertising.